What is a Bitcoin Wallet?

A Bitcoin Wallet is your digital wallet where you can store your bitcoins. In your wallet you can also send and receive bitcoins, it is very similar to online banking.

Basically there are two options to get a wallet. Option one is that you download a bitcoin client, or option two is that you use an online bitcoin wallet services. The difference between those two options is that with the bitcoin client all the coins are stored on your computer, or smartphone, and so on. On the online wallet service, all your bitcoins are stored there.

So which wallet is better to use?

Bitcoin Client:

+ You are your own bank, all coins are stored on your devices or on a paper wallet.

– It is all up to you to keep your coins safe, if you mess up you could lose all your bitcoins. So always make sure that you have a backup, and that your wallet key is password protected.

Online Bitcoin Wallet Services:

+ With an username and password you can access your wallet from any computer or smartphone.

– If the online service closes or fails, you could lose all your bitcoins. Before you use an online wallet service, make sure it is trusted. Especially wallet services that promise you a profit when you store your bitcoins on there, are very suspicious.